FACTS:

The petitioners in this case were hired as casual employees by the private respondent, a company engaged in the manufacture of cultured milk. Their job was to cut cogon grass and weeds at the back of the factory building. They were not required to work on a fixed schedule and could work any day of the week at their own discretion and convenience. However, their services were terminated by the private respondent on July 13, 1987. The petitioners filed a complaint for illegal dismissal with the National Labor Relations Commission (NLRC), and a decision was rendered by the labor arbiter on September 20, 1988, finding their dismissal to be illegal and ordering their reinstatement with full backwages and without loss of seniority rights. The private respondent appealed to the NLRC, which on September 18, 1989, set aside the decision and instead ordered the private respondent to pay the petitioners one month's pay each based on humanitarian considerations. The petitioners filed a petition for certiorari, arguing that the NLRC committed a grave abuse of discretion.

ISSUES:

1. Whether or not casual or temporary employees may be dismissed by the employer before the expiration of the one-year period of employment.

RULING:

1. Yes, casual employees may be dismissed by the employer before the expiration of the one-year period of employment. In this case, the petitioners were considered casual employees as their work of cutting cogon grass and weeds was not usually necessary or desirable in the usual business or trade of the private respondent, which is the manufacture of cultured milk. Although they may be considered regular employees if they have rendered services for at least one year, their dismissal before the expiration of the one-year period is not illegal. The services of the petitioners were found to be unsatisfactory, justifying their termination.

PRINCIPLES:

• An employment shall be deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer (Article 280 of the Labor Code).

• An employment shall be deemed to be casual if it is not covered by the preceding provision, but any employee who has rendered at least one year of service, whether continuous or broken, shall be considered a regular employee with respect to the activity in which he is employed (Article 280 of the Labor Code).

• Casual employees may be dismissed by the employer before the expiration of the one-year period of employment, as long as there are valid grounds for termination.